Canadian government bonds fell, pushing the benchmark 10- year note up one basis point, 0.01 percentage point, to 1.84 percent. The price of the 2.75 percent notes maturing in June 2022 rose 10 cents to C$107.92. Yields on Canadian securities maturing in 2041 increased one basis point to 2.41 percent.
“That’s some decent movement in the long end,” said Noel Hebert, chief investment officer at Bethlehem, Pennsylvania- based Concannon Wealth Management, which oversees about $250 million. “Some of this feels like early exits in anticipation of re-entering at better levels.”
U.S. President Barack Obama lowered his tax revenue demand, moving closer to a budget deal with House Speaker John Boehner, as politicians in Canada’s biggest trade parter seek to avoid more than $600 billion in tax increases and spending cuts scheduled to begin in January. They want to replace the immediate deficit reduction with more gradual changes.
Canada’s currency has gained 0.8 percent this year versus nine developed-nation peers tracked by Bloomberg Correlation- Weighted Indexes. The greenback has dropped 3.2 percent and the yen has been the biggest loser, tumbling 12.2 percent. New Zealand’s dollar leads gainers, up 5.7 percent.